NEW JERSEY

TRENTON, Oct. 24—Governor Cahill announced today that he was creating a state task force that would attempt to help New Jersey's cities clean up their streets and cut down their crime.

“I've been in most of the major cities in the state,” the Governor told the executive committee of the New Jersey Conference of Mayors here, “and the people in them are afraid. They're afraid to have dinner out in the cities, they're afraid to shop in the cities and they're afraid to live in the cities.”

“I tell you the cities are not safe,” the Governor said, “and I tell you also that people are not going to live in cities that are dirty and — I've got news for you — they're dirty.

“Unless these two problems are solved there is no way of saving the cities.”

The Governor also said he would ask the Legislature in his annual message early next year to continue the $25‐million urban‐aid program to cities. However, he emphasized that neither state urban and nor the newly implemented Federal revenues‐sharing program was enough to solve the problems of the cities.

Earlier this month, the Governor announced that his administration would ask the Legislature to allocate $40 million of the state's share of the revenue‐sharing funds to increase state aid to education

“However, the sources of state revenue are limited and there's no way you can raise the enormous sums of money the cities of this state need,” the Governor said today.

Mr. Cahill said that the Assembly's overwhelming rejection of his tax‐reform program last July indicated to him that “the citizens of this state don't want to pay additional taxes.” The program, based on a state income tax and a statewide property tax, was meant to bring about a sharp reduction in local property taxes in cities such as Newark.

As for Newark's new fiscal crisis, the Governor said that he had read various reports on how serious the problem was. “But even the most encouraging reports indicate that Newark is going to have serious problems with increased local property taxes.”

33‐Million Deficit Forecast

Legislative leaders here reported last week that Newark faced an impending financial crisis, which next month's special legislative session might be unable or unwilling to resolve.

Mayor Kenneth A. Gibson warned legislators at a private meeting two weeks ago that he faced a $33‐million deficit in a proposed $200‐million city budget unless the state continued all of the programs, including those scheduled to end.

And unless Newark is given the funds to close the gap, fiscal experts predict, the city will have to raise its local propeity tax, now $9.30 for each $100 of assessed valuation, to more than $11. The increase would put Newark near the top nationally in local property tax levels, and most fiscal officials here regard a tax rate of $11 as confiscatory and counter‐productive.

Talking to the mayors in a small dining room off the cafeteria in the state annex building, Mr. Cahill said that Lawrence F. Kramer, commissioner of the State Department of Community Affairs, was drafting a series of voluntary pilot projects designed to clean up city neighborhoods and cut down on crime in the streets.

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